Silver Price Forecast: XAG/USD seems poised to retest multi-month top, around $33.40 area

• Silver turns positive for the third straight day and climbs to a fresh weekly high.
• The technical setup favors bulls and supports prospects for further appreciation.
• Any corrective slide toward $32.00 might now be seen as a buying opportunity.

Silver (XAG/USD) attracts some dip-buyers in the vicinity of the $32.00 round figure and turns positive for the third consecutive day on Wednesday. The white metal climbs to a fresh weekly high during the first half of the European session, with bulls now looking to build on the momentum beyond the $33.00 mark.

From a technical perspective, the overnight sustained close above the $32.50-$32.55 hurdle confirmed a fresh breakout through a short-term trading range and favors bullish traders. This, along with positive oscillators on the daily chart, suggests that the path of least resistance for the XAG/USD remains to the upside and supports prospects for additional gains.

The white metal now seems poised to advance further towards last Friday's swing high, around the $33.35-$33.40 zone before aiming to reclaim the $34.00 round-figure mark. The momentum could extend further towards the $34.45 intermediate hurdle and eventually lift the XAG/USD to the $35.00 neighborhood, or the multi-year peak touched in October. 

On the flip side, any meaningful corrective pullback now seems to find decent support near the $32.00-$31.90 region. A further slide could be seen as a buying opportunity, which, in turn, should limit the downside for the XAG/USD near the $31.75-$31.70 horizontal zone. A convincing break below the latter might shift the near-term bias in favor of bearish traders.

The XAG/USD might then accelerate the fall towards retesting the 100-day Simple Moving Average (SMA), currently pegged near the $31.20 area, en route to the $31.00 round figure mark. Some follow-through should pave the way for a fall toward the next relevant support near the $30.25 region, the $30.00 psychological mark, and the $29.55-$29.50 horizontal zone.

Silver daily chart